- This alliance is the first of its kind in Latin America.
- The agreement involves developing a business blockchain network and infrastructure that will connect local and international securities market customers through nodes.
- A technical committee will be formed to define the details and design the project within the next six months.
- After that, a team with experience in blockchain development will dedicate about 18 months to its construction.
Santiago Exchange, the Central Securities Depository (DCV) and Gtd announced a partnership agreement on Tuesday, August 27th, which will form a technological consortium to develop a variety of blockchain-based applications for the financial market. This alliance is the first of its kind in Latin America.
The agreement involves developing a business blockchain network and infrastructure that will connect local and international securities market customers through nodes provided by the technological consortium or installed in customer systems. In both cases, access to the network uses APIs (Application Programming Interfaces), which will provide access to applications on the platform.
The Linux Foundation Hyperledger Fabric framework will be used to develop the applications, which Santiago Exchange successfully implemented last year on its new platform using blockchain technology for its short sales and securities lending system, in order to reduce the time and costs associated with these administrative processes.
“Innovation is a strategic pillar at Santiago Exchange. Through this consortium, we aim to create the best conditions for the stock market and financial business, using innovative, world-class solutions. Accordingly, this alliance will enable us to provide Blockchain technology to many customers, which will streamline their businesses,” remarked the CEO of Santiago Exchange, José Antonio Martínez.
Fernando Yañez, CEO of DCV, added that this agreement will share with the market all the knowledge that the consortium members have acquired in recent years, covering their analysis and development of this new technology. “We have been working with securities depositories around the world since 2017 to apply blockchain to our industry’s services, in addition to the project with the Chilean Central Bank to incorporate this technology into the issuance of its financial instruments,” he said.
After signing the agreement, the institutions will form a technical committee to define the details and design the project within the next six months. During this stage, institutions from the financial market application development ecosystem will be consulted in order to validate the architectural design. Subsequently, a team with experience in blockchain development will dedicate about 18 months to its construction, based on production releases every six months.
Alberto Bezanilla, CEO of Gtd, commented that “we are very proud to be part of this initiative, which is already operating successfully and with very important partners such as Santiago Exchange and DCV, in a market sector where Gtd is now a very significant supplier. Blockchain is a technology with enormous potential to enter markets and industries where our company has an influential position, due to our connectivity services, infrastructure and value-added services. We believe that this initiative will open up significant opportunities for us to implement similar platforms in other verticals in the future.”